Assicurazioni Generali S.p.A.

Good afternoon. This is the Coral School conference operator. Welcome and thank you for joining the Generali Group 9 Month 2025 results presentation. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Fabio Cleva, Head of Investor and Rating Agents Relations. Please go ahead, sir.

Hello, everyone, and thank you for joining our call. Here with us today we have the Group General Manager, Marco Cesana, the CEO of Insurance, Giulio Terzeriola, and the Group CFO, Cristiano Borean. Before opening for the Q&A, let me hand it over to Marco and Cristiano for some opening remarks.

Hello, everyone, and good morning, and thanks for being with us today. So, today, this set of results confirmed the Lifetime Partner 27 Driving Excellence Plan as starting on a very strong footing, thanks to, in particular, to the excellent performance of our P&C business. Implementation of the strategy and of its work stream is the key focus of the entire group. One of the most relevant changes that we made in this strategic plan is reinforcing the role of the center in orchestrating more organically strategic business initiatives. Each group management committee member is sponsoring one of the planned strategic initiatives with the key head office function working in close cooperation with our business unit. We are reaping the benefits of being a group. As part of this approach, the whole GMC is very focused in sharing best practices and scaling up local initiatives. I could list many exciting developments I've seen over the past nine months as part of this interaction, but let me just highlight three that I found particularly compelling. First, sophisticated NATCAP modeling in major countries such as Italy, France, and Czech Republic. So we developed a machine learning model for wind storms, severe convective storms, combining internal claims data with external weather data through machine learning systems. And this approach will soon be scaled to other countries. Second, claims automation in Austria. A great example of automation and speed of automated health claims reimbursement. which have now reached 56% of automation for invoice processing, and pharmacy invoices are settled in just 18 seconds. And finally, our group geospatial platform. This provides advanced geospatial capabilities for underwriting purposes. This is already live in Italy, France, Spain, and across the world in our global corporate and commercial business, with further expansion in other business units planned for 2026. When I see this initiative on the ground delivering tangible results, I'm very confident in our journey of delivering excellence. So, let's now focus on our nine-month result. P&C continues to show positive momentum in terms of both top line, up over 7%, and margin expansion. with the undiscounted combined ratio improving by over 2 percentage points compared to last year. At the beginning of the year, we told you that we were very confident about our development thanks to the combination of larger volume coming through and sharp portfolio repricing in an environment where frequency is declining and claims inflation is under control. As you can see, we are very much on the right track to achieve our undiscounted combined ratio target well ahead of schedule. The top management team is thinking strategically about cycle management to ensure a continuous improvement in the combined ratio supported by our historical and reinforced technical excellence and to make today's underwriting margin resilient in the future. You can see this in the discipline we apply to underwriting, you can see this in our country-specific pricing approach, and you will increasingly see this in the benefit we expect to generate across the P&C value chain from new digitalization and automation. In this quarter, as Cristiano will later explain, You can also see this in an even more conservative approach to initial loss peaks and clearly even more visible in the prior year development. What we see is an insurance sector that has been disciplined and continues to be disciplined. I want to reassure you that as part of the sector, Generali will be a force of discipline as the cycle progresses. Our P&C top line is continuing to grow and is mostly driven by the price effect, which we measure as the improvement of the average annual premium for the retail and SME segment. This pricing effect remained very significant at nine months, at plus 6.4% for motor and plus 5.2% for non-motor retail and SME. Looking at the technical margin, we achieved continued improvement in the average earned premium in comparison with that of the risk premium, resulting from the combination of claim frequency and claim severity. In motor, which represents around one-third of our P&C portfolio, the average earned premium increase for our top 10 market exceeded 10% at nine months. while the risk premium rose around 1% thanks to the decrease in claims frequency in most of the countries, coupled with well-contained claims inflation. In on motor, the industrial KPIs point to an improvement in the current year attritional loss ratio of around 1.2 percentage points, very much spread across the majority of the business units. At 9 months 25, the non-motor combined ratio is at 91.4%. These dynamics are at the core of the significant improvement in our P&C profitability and will continue to drive the improvement in the combined ratio. I thought it was helpful to provide you this context and we are happy to help you bridge the P&C industrial QPI with our reported combined ratio in the Q&A. Now, moving to life, let me remind you of our target to gather between 25 and 30 billion of cumulative light net inflow in our lifetime partner 27 plan. We have exceeded 10 billion in nine months with a very good result for protection and health with 3.7 billion and hybrid and unit link with 4.7 billion. The improvement in the live net inflow is a function of both the effectiveness of our distribution and the evolution of our product offering. Live net inflow also improved thanks to the reduction of surrenders. Just to give you a sense, surrenders at 9 months compared to the same period of last year were down by almost 2.6 billion in Italy and by over 500 million in France, consistent with our previous comments on the improvement in lapses. In the first quarter call, we give you a new business margin guidance for the remaining of the year. between 5.25% and 5.75%. In the second quarter, we had a 5.64 new business margin, and in this quarter, we recorded a 5.74 new business margin. This demonstrates that we have done quite well, not only in terms of volume, but also in terms of margin. You will have noticed that at nine months, the growth of new business value has also turned positive year on year. In addition to volume and marginality, let me also confirm the underwriting discipline of this new business with some key data points on the quality. Over 73% of our new production has no guarantees compared to 66.4% in the same period of last year. The share of new production coming from capitalized products is close to 85%. So, to summarize, we continue to have strong net flows with improving margin and confirming our underwriting discipline to ensure long-term resilience of our in-force book, also thanks to the ongoing quality of the new business. Now, moving to investment portfolio. As you know, we have an allocation to private market that is more limited than the one of our main peers. It is around 18%. We do see value in a diversified portfolio, and therefore we continue to aim at increasing our allocation to alternatives in a disciplined way. Our portfolio of alternatives is balanced with strong safeguards to ensure it meets our strict criteria. When you look at the private debt portfolio of around $19 billion, almost half of it is in real estate debt and infrastructure debt, both having a high-grade credit quality. Around three-quarters of our private debt portfolio is secured by collateral and our exposure to single borrowers is very limited. The allocation to direct lending, which has been the focus of the market recently, is around half of our private credit portfolio and is therefore less than 3% of our general account. Also, the vast majority sit in live portfolio with policyholder participation and very low guarantees. Only 23% of our private debt portfolio is in the U.S., and thanks to our Street Investment Guideline, we have had hardly any exposure to credits which have been in the news recently. Given this strong framework, we are very comfortable with our portfolio. We continue to believe that there is value in gradually diversifying our government bond exposure into credit, as I explained to our investor day in January. Our strategic asset allocation move is also well informed by the trends we are seeing in the government debt market, where there were also some downgrades recently. So to summarize, the very strong start of our strategic plan, coupled with the prudence we are exercising across the board, provide us with confidence that this trajectory will be maintained and will prove its resilience to a volatile external context. Thank you for your attention and let me now hand over to Cristiano.